"morality" exercise:Behavioral prejudice

A is correct. The GIPS standards do not promote fair competition among investment management firms in all markets by requiring a common fee structure. 

B is incorrect. Ensuring consistent, accurate investment performance data in areas of reporting, records, marketing, and presentations accurately represents the GIPS standards concerning the fundamentals of compliance. 

 C is incorrect. Obtaining global acceptance of calculation and presentation standards in a fair, comparable format with full disclosure accurately represents the GIPS standards concerning the fundamentals of compliance

A is correct. The belief that one’s ethical standards are above average illustrates an overconfidence bias. An overconfidence bias will most likely lead individuals to overestimate the morality of their own behavior and can lead to a failure to consider important inputs and variables needed to make the best ethical decisions.

B is incorrect. A short-term focus is an aspect of situation influences. Our brains more easily and quickly identify, recognize and consider short-term situational influences versus longer-term considerations. Long-term considerations have less immediate consequences making them less obvious as factors to consider in a decision and therefore, less likely to influence our overall decision making. 

 C is incorrect. Situational influences are external factors that shape our thinking, decision making, and behavior. Learning to recognize a situational influence is critical to making good decisions however it is not a behavioral bias.